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'90% of women business start-ups fail in first 10 years'
10 Oct 2024 at 07:47hrs | Views
Approximately 90% of business start-ups globally fail within their first 10 years, with a significant number owned by female entrepreneurs, according to business strategist Tatiana Ellis. Speaking at the Atlantic Council Conference in Harare yesterday, Ellis highlighted the daunting statistics surrounding business sustainability, particularly for women-led enterprises.
The two-day conference, aimed at empowering emerging women business leaders in Zimbabwe, began with a focus on enhancing their economic participation and addressing the unique challenges they face.
In her address, Ellis outlined the four critical stages of a business's life cycle: Start-up, growth, maturity, and decline or renewal. She emphasized the importance of navigating the initial start-up phase, which is fraught with high uncertainty and limited resources, and is often where many businesses falter.
"The start-up phase, which lasts from zero to two years, is characterised by high uncertainty and limited resources, making it a challenging period for new entrepreneurs," Ellis said. "Following this, the growth stage presents opportunities for rapid expansion, but also increases competition. Understanding these stages is crucial for any entrepreneur looking to build a sustainable business."
Ellis revealed that in Africa, around 10% of start-ups fail within the first five years, and only 20% survive past that point. By the 10-year mark, approximately 90% of businesses would have failed, with female entrepreneurs being disproportionately affected by this trend.
She urged women in business to learn from these sobering statistics and document their strategies for better sustainability.
"Awareness of the business life cycle and the challenges it presents is vital for anyone looking to succeed in today's competitive market," Ellis advised.
Government’s Commitment to Women’s Empowerment
At the same event, Women Affairs, Community, Small and Medium Enterprises Development Minister Monica Mutsvangwa emphasized the need for collective action to make the constitutional rights of women a reality. She outlined the ministry's efforts to empower women through financial inclusion, access to markets, and rural industrialization.
Mutsvangwa also called on financial institutions to collaborate with the government to support female entrepreneurs, underscoring the importance of coordinated efforts in boosting women's participation in the economy.
The Atlantic Council Conference is expected to set the stage for further initiatives aimed at equipping women entrepreneurs with the knowledge and tools they need to succeed in the business world, despite the daunting odds.
The two-day conference, aimed at empowering emerging women business leaders in Zimbabwe, began with a focus on enhancing their economic participation and addressing the unique challenges they face.
In her address, Ellis outlined the four critical stages of a business's life cycle: Start-up, growth, maturity, and decline or renewal. She emphasized the importance of navigating the initial start-up phase, which is fraught with high uncertainty and limited resources, and is often where many businesses falter.
"The start-up phase, which lasts from zero to two years, is characterised by high uncertainty and limited resources, making it a challenging period for new entrepreneurs," Ellis said. "Following this, the growth stage presents opportunities for rapid expansion, but also increases competition. Understanding these stages is crucial for any entrepreneur looking to build a sustainable business."
Ellis revealed that in Africa, around 10% of start-ups fail within the first five years, and only 20% survive past that point. By the 10-year mark, approximately 90% of businesses would have failed, with female entrepreneurs being disproportionately affected by this trend.
She urged women in business to learn from these sobering statistics and document their strategies for better sustainability.
"Awareness of the business life cycle and the challenges it presents is vital for anyone looking to succeed in today's competitive market," Ellis advised.
Government’s Commitment to Women’s Empowerment
At the same event, Women Affairs, Community, Small and Medium Enterprises Development Minister Monica Mutsvangwa emphasized the need for collective action to make the constitutional rights of women a reality. She outlined the ministry's efforts to empower women through financial inclusion, access to markets, and rural industrialization.
Mutsvangwa also called on financial institutions to collaborate with the government to support female entrepreneurs, underscoring the importance of coordinated efforts in boosting women's participation in the economy.
The Atlantic Council Conference is expected to set the stage for further initiatives aimed at equipping women entrepreneurs with the knowledge and tools they need to succeed in the business world, despite the daunting odds.
Source - newsday
